Change of NASD Guard Stirs Up Some Surprise

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The changing of the top guard at NASD comes as the dealers' group transforms itself so it can survive in the brave new world of trading.

The National Association of Securities Dealers is in the middle of spinning off Nasdaq into a private company with advanced technology in a global market.

Robert Glauber, 61, an academic from Harvard University and a former Under Secretary of the U.S. Treasury for Finance in the Bush administration, was picked for the top NASD spot. He becomes the new chief executive and president on November 1.

NASD Chairman Frank Zarb, 65, will relinquish his post as president and chief executive of the NASD. He will remain as chairman and chief executive of Nasdaq for an interim period.

The elevation of Richard Ketchum, 49, to the number one post at Nasdaq, was not a complete surprise. Ketchum, president of the NASD since 1998, is credited with possessing impressive technical and political skills for the Nasdaq job.

The biggest surprise may be Alfred Berkeley, III, 55, the outgoing day-to-day head of Nasdaq. That he does not remain as the top hands-on Nasdaq executive could be interpreted as a snub.

Lee Korins, president of the Securities Traders Association praised the new appointments but declined to comment on Berkeley's status. Berkeley will be vice chairman of the Nasdaq board.

Korins said he had dealings with Glauber when he was Under Secretary. Ketchum's background "uniquely qualifies him to be in charge of Nasdaq," he said.

Under the changes, the NASD will consist of the American Stock Exchange and Nasdaq Regulation.